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Domestic luxury car sales are growing year by year, in sharp contrast to the overall decline in the auto market. Even so, Cadillac, the fourth-largest luxury brand, continues to decline, falling 7.6% last year and 27% in the first month of 2020.

According to Cadillac official data, sales in January were 19,600 units, compared with 26,801 units in the same period last year, down 27% year-on-year, and a bad start will hit Cadillac's full-year results.

Affected by the Spring Festival holiday and epidemic situation, the overall sales volume of domestic passenger cars fell 20.4% year-on-year in January, and the automobile industry fell by 27%, which also exceeded the industry average. In fact, restricted by product and market factors, SAIC GM has declined for many months. In January, the cumulative sales volume of SAIC GM's three major brands was 125,464 vehicles, down 30.5% year-on-year, which also exceeded the industry average level.

At present, Cadillac faces the biggest threat from Lexus behind it, which continues to grow momentum or will soon take away the title of second-tier luxury champion, even the market believes that the future domestic luxury car pattern will form a market centered on "BBAL", after which Cadillac and Volvo stand side by side in the second line. Therefore, for Cadillac, seeking to stop falling and recover performance will be an urgent problem to solve.

In 2019, Cadillac sold 212,507 units, down 7.6% year-on-year; Lexus reached 200,521 units, up 25% year-on-year. The sales figures for both are very close.

Cadillac was subject to the implementation of the National VI emission standard last year, resulting in the early delisting of ATX-L and XTS, and the new products failed to make up for the losses in time. With the gradual movement of the new CT5 model and the rich product line of the new XT6, it is expected to boost the brand. This year, Cadillac entry-level mid-size sedan CT4 will be launched in China in the first half of the year, and further price exploration will also be the best time for brand sales to increase.

In the past January, XT6 sold 3,185 vehicles. The car was officially launched in July last year at a price of 419,700 yuan-549,700 yuan. It is positioned as a medium and large SUV with 6-seat and 7-seat versions. The powertrain is equipped with a 2.0T variable cylinder turbocharged engine and a 9-speed automatic transmission. CT5 is a brand-new medium-sized sedan launched by Cadillac, selling 4,693 vehicles in January. The car is equipped with a 2.0T engine and a transmission system matched with a 10-speed automatic transmission. The price is 2797 - 339,700 yuan. Subsequent faster price cuts to boost sales is Cadillac's sales strategy in the past, so consumers are more in wait-and-see mood.

In 2020, Cadillac plans to implement a 3+3 product strategy, namely 3 SUVs +3 sedans. Among them, ATS direct replacement_CT4 is about to be launched, the price is expected to further explore. According to the declaration information of the Ministry of Industry and Information Technology, the car is equipped with a 2.0T turbocharged engine model LSY with a maximum power of 230 hp (169 kW). In terms of size, its length, width and height are 4760/1815/1421mm respectively, and the wheelbase is 2775 mm. The market estimates its starting price at around 240,000 yuan, which will play a big role in boosting sales of Cadillac brand.

Wang Yongqing, general manager of SAIC GM, said earlier,"I hope Cadillac will achieve double-digit growth by 2020, which is also my request to Cadillac Minister."

For the "price for volume" sales strategy, Wang Yongqing also gave his own views, which said that the rapid growth of the automobile market, car enterprises in order to seize market share, play "price war" is still useful, but with the consumer began to return to rationality, now the brand concentration and loyalty is getting higher and higher, while customers to the enterprise requirements are also getting higher and higher, in such a competitive environment, only "price war" is out of date.

In the face of Lexus sales growth under the catch-up, Cadillac may lose the status of second-tier luxury champion at any time, the future luxury car market trend and pattern will have an impact, so Cadillac will also face greater market competition pressure this year.

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